Item 4 - Services, Fees and Compensation

Fixed Income Portfolio (FIP®) offers a discretionary fee based value strategy that includes discounted/ premium taxable high yield bonds, double tax-exempt and taxable municipal bonds, preferred stocks, convertible bonds, and foreign- denominated bonds.

Fixed Income Portfolios FIP® Program:

The firm emphasizes discounted high-grade debt securities over equity and alternative investments in order to achieve both constant annual income returns and fixed income price appreciation. The firm may use proceeds accumulated from bond redemptions and income generated in order to invest in equities. Additionally, the investment process is gradual, fundamental in nature; and therefore, at times, supply constraints as well as low interest rate environment could lead to excessive cash balances whereby many of the buy orders bid on are not executed in a timely manner.

Our group performs daily, in depth, independent research of debt instruments regardless of size and ratings. In-house research of all prospectuses and published updates are analyzed and stacked against both the rating agencies’ opinion, and the street research reports. In addition, the same Inhouse research is also applied to the Municipal Debt Market in California. Near three decades of researching and investing in this space has landed our firm with a large data base of a vast California Municipal Debt issuance as well as a unique set of expertise to enable us to capitalize quickly when dislocations in this debt market occur.

Management of Fixed Income Portfolios (FIP®) can be performed on a dual platform: Discretionary and Non-Discretionary fee basis (Registered Investment Advisor), and Discretionary and Non-Discretionary transactional basis through our firm’s association with the broker dealer: Purshe Kaplan Sterling Investments (PKS), and their clearing operations with National Financial Services (NFS). Additionally, the broker-dealers we do advisory business with and/or our firm’s preferred custodian-Schwab Institutional, may clear through RBC Capital Markets LLC, Pershing LLC, Legent Clearing, Inc. Wedbush Morgan Securities and Crews & Associates, Inc. Israeli citizens will be able to open accounts with Tamar Securities, LLC; which are custodied with Bank Hapoalim domiciled in Israel, whereby we will place the trades through Crews & Associates, Inc., an SEC registered investment advisor and FINRA/SIPC member broker-dealer.

We seek professional Bid/Offer execution of bond trades, across all Fixed Income Desks on Wall Street. It is our motto to fight on behalf of our clients for best in class executions. In order to accomplish this optimal Bid/Offer pricing principal, we first establish multiple relationships with Fixed Income desks around the country. Second, all bond purchase Offerings are Bid on, and finally, all bond sell Offerings are put out for a Bid from at least three bond desks on Wall Street. This process ensures best in class trade executions; and therefore, substantially improves Bid/Offer pricings for the firm’s clients. In many cases, and at odds with Wall Street practices, this Bid/Offer execution platform is duplicated for odd lot bond offerings where there is not enough liquidity; thereby, allowing our firm to Bid on bond Offerings at even deeper discounts then is warranted in a typical market place.

Lastly, independently of on which bond desk a Fixed Income transaction took place, all trades settle with our firm’s preferred custodian; Schwab Institutional. Periodic ongoing reviews are scheduled with all clients. This process includes the followings: • Review of the entire portfolio as well as its underlying Fixed Income Securities benchmarked each quarter against their respective Fixed Income indexes; • Recalibrate each client’s asset allocation models as his or her life circumstances change, and; • Present consolidated reporting that incorporates the Fixed Income Portfolios (FIP) with the entire holdings of the clients’ other investments disciplines.


Fixed Income Portfolios FIP® Schedule:

All Fixed Income Portfolios (FIP) will adhere to the following pricing schedule:
  Assets Under Management
  Annual Net Fee Assessed *
First $500,000
Next $500,000
Over $1,000,000

*Our firm’s fees are generally not negotiable. Further, our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on the value of your account on the last day of the previous quarter.

For complete and updated information about our Investment programs and services, please refer to the Firm ADV Part 2A - Firm Brochure: